How Harcourt Brace created a powerhouse publishing empire in the West.

Howard Penn Hudson, publisher emeritus, The Newsletter on Newsletters

Sidney Bernstein, head of the New York office of Thompson Publishing Group of Washington, D.C., left in 1995 to direct the acquisition program of Harcourt Brace Professional Publishing. Two years later he became publisher at the headquarters in San Diego. And recently I saw an impressive list of about 20 newsletters which the company produces.

So when my wife, Elaine, and I were enjoying the delights of the legendary Hotel Del Coronado in San Diego a few weeks ago we got together with Bernstein and the editorial director, Julie Philipsen.

I asked them, "How did this big New York publishing company develop such a formidable group of newsletters so far away from its home base?"

Sid reminded me that Harcourt's publisher, William Jovanovich had early work and naval experience in San Diego, and he moved some divisions of the company to San Diego in 1991. Ken Rethmeier, who had been with the College Division, took over its Miller Accounting Reference Books and built Harcourt Professional Publishing around it. Sid, who has had 30 years of professional publishing, joined him, first in New York and then in San Diego. The majority of the products are books and electronic, and now 18 professional newsletters have been added.

I told him of my skepticism about book publishers being successful in newsletters, because of the many disasters I had observed and written about in The Newsletter on Newsletters.

We observed the same thing, he replied. However, he pointed out, according to Gen. Douglas MacArthur, "If you always do everything that can possibly be done, you'll always win."

"That may not be metaphysically true," he continued, "but it is a good work ethic and it is ours. We never considered losing as a viable option. Some things we knew from past publishing experience, some we learned from others we brought aboard. Some we learned from industry leaders who generously shared their experiences. Some we learned from the NPA. Most importantly, we knew what we didn't know, weren't afraid to admit it, and went out and learned.

"Maybe we were lucky. Maybe we were smart. Maybe admitting ignorance is the beginning of wisdom."

I asked whether the area was a good one for putting together an editorial staff. He said that San Diego is not a publishing town, but in an oblique reference to the terrific year-round climate, he added, "I've had harder challenges in my life than getting people to move to San Diego."

Finally, I wondered whether the staff was scattered or all located in one office. His characteristically upbeat reply: "We're located atop the Harcourt building in downtown San Diego where we can see all the way from here to future success."